Here's What to Expect From Global Payments’ Next Earnings Report
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Valued at a market cap of $17.6 billion, Global Payments Inc. (GPN) is a leading worldwide provider of payment technology and software solutions. Headquartered in Atlanta, Georgia, the company offers a broad suite of services that enable merchants, financial institutions, and consumers to process digital payments seamlessly and securely.
GPN is expected to release its fiscal Q1 earnings results on Wednesday, May 7. Ahead of this event, analysts expect the fintech company to report a profit of $2.52 per share, up 1.6% from $2.48 per share in the year-ago quarter. The company has beaten Wall Street's earnings estimates in three of the past four quarters.
Analysts expect GPN to report an EPS of $11.70 this year, reflecting a rise of 5.9% from $11.05 in fiscal 2024. Moreover, EPS is expected to increase 13.6% year-over-year to $13.29 in fiscal 2026.
Shares of GPN have plunged 43.5% over the past year, significantly lagging behind both the S&P 500 Index's ($SPX) 8.2% surge and the Technology Select Sector SPDR Fund’s (XLK) 3.7% return over the same period.
Global Payments Inc. shares dipped more than 17% on Apr. 14, ranking among the biggest S&P 500 decliners, after announcing a $24.25 billion cash-and-stock acquisition of Worldpay from GTCR and Fidelity National Information Services, Inc. (FIS). The deal involves purchasing a 55% stake from private equity firm GTCR and the remaining 45% from FIS. Concurrently, Global Payments agreed to sell its Issuer Solutions business to FIS for $13.5 billion.
While the deal is aimed at expanding Global Payments' reach in the rapidly evolving digital payments space and strengthening its position in merchant acquiring, investors reacted negatively due to concerns over the hefty price tag, integration risks, and potential debt load associated with the transaction.
Analysts' consensus view on Global Payments stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 34 analysts covering the stock, 13 recommend a "Strong Buy," two suggest "Moderate Buy," 17 indicate “Hold,” and two recommend a “Strong Sell” rating.
The average analyst price target for GPN is $111.14, indicating a 54.2% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.